Dead economy? U.S. cashed billions from Indian students, tech workers, and investors

Donald Trump has called India a “dead economy” and accused it of being a bad trading partner. But data from trade, education, tourism, tech, and investment show a different reality. 

India is not only exporting goods and services—it is pouring billions into the U.S. economy through students, tourists, capital markets, and supply chains. Far from being “dead,” India is deeply wired into America’s growth story.

Trade: Deficits, but deep links
In 2022, the U.S. ran a $38.4 billion goods trade deficit with India, importing $85.5 billion and exporting just $47.2 billion. By 2024, this deficit grew to about $45.8 billion.

On services, the picture is more balanced. The U.S. imported $33.03 billion in services from India in 2022 and exported $26.53 billion. But by 2024, U.S. services exports to India surged to $40.26 billion, with imports at $40.74 billion—virtually even.

Economists note that once revenues from education, software, financial services, and IP royalties are factored in, the U.S. likely enjoys a “hidden surplus” of $35–40 billion in services with India.

Education: Indian students boost US revenue
As of 2024, around 420,000 Indian students were studying in the U.S., up from 331,000 the year before. These students are a major revenue source, spending an estimated $7–8 billion annually on tuition, housing, and living costs—fueling not just universities but local economies.

Tourism: Indians spend big in the US
Indian tourists are visiting the U.S. in record numbers. Nearly 1.9 million Indians visited in 2024 (Jan–Oct)—up 48% from pre-pandemic levels. In 2022, there were 1.26 million visitors. Indian tourists also rank among the highest-spending, contributing over $13 billion to the U.S. economy in 2022 alone.

Investment: Capital flows in both directions
In 2024–25, the U.S. accounted for 11% of India’s FDI, injecting around $8.9 billion into the country. U.S. foreign portfolio investors (FPIs) held over 31% of India’s total FPI holdings by mid-2025—regaining the top spot from Singapore and controlling several trillion rupees in equity positions.

Markets: Wall Street’s heavy bet on India
As of June 2025, U.S. investors owned roughly 17% of India’s total market cap, even after recent outflows linked to tariff tensions. U.S. money remains a dominant force in Indian equities.

Tech & manufacturing: India as an American base
India is now home to the largest overseas operations for Google, Microsoft, Amazon, Meta, and OpenAI. These hubs don’t just serve India—they develop core global products.

On hardware, Apple manufactures most iPhones sold in the U.S. in India. As of 2025, models iPhone 14–16 are produced there, with the iPhone 17 entering trial production. India is now a core part of Apple’s global supply chain.

While Trump decries trade deficits, the full picture reveals a different story. From education to tech to tourism, India is not just exporting goods—it’s bankrolling key sectors of the U.S. economy.